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SafeTraffic, Inc. is considering the $321,000 purchase of a machine that will allow it to produce aluminum red light camera enclosures for 5 years, after

SafeTraffic, Inc. is considering the $321,000 purchase of a machine that will allow it to produce aluminum red light camera enclosures for 5 years, after which the machine will no longer be serviceable. The production data, discount rate, and tax rate are shown below: Initial investment $ Depreciation straight-line over life (Years) Units sold Annually Cost per unit $ Price per unit $ Tax rate Required return 321,000 5 3,600 23.89 49.95 21% 14% Should SafeTraffic purchase the machine? (Show why or why not.)

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